Earnings call transcript: Delivra Health Brands sees 80% revenue growth in Q4 2025

Delivra Health Brands Inc. reported notable financial performance in its Q4 2025 earnings call, highlighting significant revenue growth and maintaining strong gross margins. According to InvestingPro data, the stock has shown remarkable momentum with a 55.56% return in the past week and a 105.88% gain over six months. The company’s current market capitalization stands at $6.5 million, with a beta of 1.56 indicating higher volatility than the market. Delivra’s focus on innovation and strategic expansion was underscored by its leadership, setting an optimistic tone for future growth.

Key Takeaways

• Delivra reported an 80% year-over-year revenue growth in fiscal 2025.
• Gross margins were maintained at 51%, signaling operational efficiency.
• Delivra achieved positive adjusted EBITDA for the third consecutive year.
• The company is expanding its Dream Water product line with new functional extensions.
• Strategic focus includes M&A opportunities and expanded marketing efforts.

Company Performance

Delivra Health Brands has demonstrated robust growth with an 80% increase in revenue compared to the previous year, marking a significant achievement in fiscal 2025. The company has maintained a 51% gross margin, showcasing its ability to manage costs effectively. Over the past four years, Delivra achieved a compound annual growth rate of 13%, highlighting its consistent upward trajectory. The company’s retail and international channels, particularly in the U.S., saw a 17% increase, emphasizing its expanding market presence.

Financial Highlights

• Revenue: 80% year-over-year growth in fiscal 2025
• Gross margin: 51%, consistent with previous performance
• Inventory increase: 86% (approximately $1.3 million)
• Positive adjusted EBITDA for three consecutive years

Outlook & Guidance

Looking ahead, Delivra is targeting continued growth in fiscal 2026, with strategic initiatives including mergers and acquisitions and enhanced marketing efforts through new media channels. The company aims to maintain gross margins above 50% and is focused on a scalable, self-funded growth model. InvestingPro analysis reveals the stock’s RSI is currently in overbought territory, suggesting investors should monitor price movements carefully. The company maintains a strong balance sheet with more cash than debt, providing flexibility for its growth initiatives. Discover more exclusive insights and 12 additional ProTips about Delivra’s financial outlook with an InvestingPro subscription. Delivra’s product innovation strategy includes expanding its Dream Water line to include immunity, beauty, and enhanced sleep formulations, alongside advancing LivRelief’s topical innovations.

Executive Commentary

Gord Davey, President and CEO, stated, "Delivra Health Brands is financially disciplined, operationally strong, and positioned for accelerated, self-funded growth." This sentiment was echoed by CFO Jack Tasse, who noted, "The balance sheet status puts us in a position of strength, and this is the foundation of our future growth." These remarks underscore the company’s confidence in its strategic direction and financial health.

Risks and Challenges

• Market saturation in the wellness industry could pose competitive challenges.
• Potential supply chain disruptions may impact product availability.
• Macroeconomic pressures, such as inflation, could affect consumer purchasing power.
• Expansion into international markets carries geopolitical and regulatory risks.
• Dependence on retail and e-commerce partnerships requires maintaining strong relationships.

Delivra Health Brands’ earnings call highlighted its strong performance and strategic initiatives aimed at sustaining growth. While the company faces market challenges, its focus on innovation and operational efficiency positions it well for future success. Access comprehensive valuation models, peer comparisons, and detailed financial metrics through InvestingPro’s research reports, available for over 1,400 US equities including Delivra Health Brands.

Full transcript - Delivra Health Brands Inc (DHB) Q4 2025:

Conference Operator/Moderator: Good morning and welcome to the Delivra Health Brands Inc. year-end fiscal 2025 results conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. Presenting on today’s call will be Gord Davey, President and CEO, and Jack Tasse, CFO. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then one on your telephone keypad. Should you need assistance during the conference call, you may reach an operator by pressing star, then zero. The information communicated by Delivra Health Brands Inc., the company, is intended solely for discussion purposes and is not intended as and does not constitute an offer to sell or a solicitation of an offer to buy any security and should not be relied upon by you in evaluating the merits of investing in any securities.

The company believes the information communicated in this overview to be reliable but makes no warranty or representation whether expressed or implied and assumes no legal liability for the accuracy, completeness, or usefulness of any information disclosed. Any estimate, investment strategies, and view expressed during this conference call are based upon current market conditions and/or data and information provided by unaffiliated third parties and is subject to change without notice. All forward-looking information provided during this conference call is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as of the date hereof. Except as required by law, the company disclaims any obligation to update or revise any forward-looking statement whether as a result of new information, events, or otherwise.

I would now like to turn the conference over to Gord Davey, President and CEO of Delivra Health Brands Inc. Mr. Davey, please proceed.

Gord Davey, President and CEO, Delivra Health Brands Inc.: Thank you. Why should you be excited about Delivra Health Brands? Good morning, everyone, and thank you for joining us. My name is Gord Davey. I’m the President and CEO of Delivra Health Brands, and I’m proud to be leading this company at such a pivotal and exciting stage of its evolution. As we reflect on fiscal 2025, one thing is clear: Delivra Health Brands is winning. We’ve built a profitable, disciplined business with high-margin brands, expanding distribution, and strong consumer loyalty. We’re not a turnaround story anymore. We’re a growth story, and the progress we’ve made has set the stage for what we believe will be an exceptional next phase for our shareholders. Let’s start with the results. In fiscal 2025, we delivered an 80% year-over-year revenue growth. This is even while revamping our LivRelief-infused business unit.

Our largest brand, Dream Water, in both Canada and USA has achieved double-digit growth across retail and e-commerce businesses. LivRelief Canada has delivered double-digit e-commerce growth as well. We’ve maintained a 51% gross margin and achieved positive adjusted EBITDA for the third consecutive year. We’re still increasing investments in marketing, sales, and product innovation that will drive future growth. These aren’t small wins. They’re proof that our strategy is working, our brands are resonating, and our leadership team is delivering. Of course, growth doesn’t come without challenges. We’re reorganizing our LivRelief-infused route to market to build a more controlled and profitable business model. We’re managing rising input costs, global instability, and a competitive landscape that targets market leaders like us. We view these challenges as opportunities, opportunities to strengthen our operations, improve our efficiencies, and sharpen our competitive edge.

Our brands are leaders in their categories, and with leadership comes competition. That’s a good sign. It means we’re on the right track. We’re tackling every challenge head-on while keeping our focus on innovation, profitability, and market share expansion. We have five key growth drivers that make Delivra Health Brands a strong investment. Let me walk you through the five major areas that make Delivra Health Brands such an attractive and scalable growth opportunity. Our first is that we’re gaining strong traction with major retail and e-commerce partners across North America. Dream Water continues to expand with top convenience chains like Circle K, 7-Eleven, and Casey’s. We’re expanding in the travel channel. We are in every airport in North America through Hudson News, Paradies, and WHSmith.

We’re in grocery channels like Loblaws and Sobeys, drug channels like Shoppers Drug Mart, Rexall, London Drugs, and several online retailers, each delivering consistent double-digit growth. Our expansion plans include large key club retailers, U.S.A. drug retailers, and more large convenience retailers. LivRelief is also accelerating, adding new retail and digital partners. These high-volume accounts create recurring, predictable revenue that kind investors love to see. We talk to you about global expansion. We’ve established a solid foundation in North America and are now turning outward. Our early success in the Middle East has opened the door for broader international expansion into Latin America and Europe, where demand for natural wellness solutions continues to rise. This is a scalable, asset-light growth opportunity that can multiply our global footprint without major capital investment. We have an innovation pipeline.

Innovation is a major driver of shareholder value. Dream Water will soon launch new functional extensions focused on immunity, beauty, and enhanced sleep formulations, while LivRelief continues to advance science-backed topical innovations for pain and wellness. These aren’t just line extensions. They expand our consumer base and open new categories, positioning Delivra Health Brands Inc. for incremental revenue and margin growth. We’re looking at strategic M&A opportunities. We’re now in a position of strength to pursue selective, active acquisitions while we’re targeting profitable or near-profitable wellness and better-for-you brands that align with our product focus and can benefit from our existing infrastructure. We have a proven operating model with strong margins. M&A provides a path to accelerate growth and scale our earnings power, creating direct value for our shareholders. We’re going to look at expanded marketing and awareness. Brand equity drives long-term valuation, and we’re investing smartly to build it.

Campaigns like "Shift Your Mind" for Dream Water and "Quiet Chronic Pain" for LivRelief have strengthened consumer awareness and credibility. This coming year, we’ll expand into new media, influencer channels, and strategic partnerships, ensuring our brands remain visible, trusted, and in demand. Why should you be excited to be a shareholder? Here’s the bottom line. Delivra Health Brands is financially disciplined, operationally strong, and positioned for accelerated, self-funded growth. We have a proven ability to generate profit. We have category-leading brands with room to scale. We’re expanding our global and retail partnerships. We have a robust innovation and acquisition pipeline and a management team that knows how to execute. We’ve already delivered three straight years of positive adjusted EBITDA, maintained strong gross margins, and built a platform that’s now ready to grow exponentially without relying on external capital.

If you’re a shareholder today, you should be proud of what you have. If you’re considering investing into Delivra Health Brands, this is the right time because we’re only just beginning to unlock the full potential of our brands and markets. Delivra Health Brands is entering fiscal 2026 with momentum, confidence, and a clear path to growth. We’re focused on scaling our success, driving profitability, and building lasting shareholder value. Thank you for your continued trust and support. I’ll now turn things over to our Chief Financial Officer, Jack Tasse. Thank you, Gord. This is Jack Tasse, CFO, Delivra Health Brands. It is a great day here today at Delivra Health Brands. I would like to give a great, great big shout out to the team for delivering strong results for fiscal 2025 and thank our shareholders for their continued commitment and support.

Fiscal 2025 marks another successful year in terms of the growth of its top line, with a compound annual growth rate of 13% over the past four years. In some years, it is even higher. The company is reporting its third consecutive year with positive EBITDA despite additional significant investments made in marketing programs and despite increasing cost pressures from manufacturing partners and supply chain and challenges in the infused LivRelief channel. It is very important to highlight the significant improvements in the company’s balance sheet, i.e., financial position, and more specifically, its liquidity and working capital positions. The balance sheet status puts us in a position of strength, and this is the foundation of our future growth. For example, the company was able this year, fiscal 2025, to increase its inventory by more than 86%, which is roughly $1.3 million, to support future growth without additional funding.

This supports our ability to take advantage of growth opportunities in the future. Here’s a quick overview of the year-over-year progress of the company’s main KPIs. The first one, which is to uncover potential in the U.S. and international markets for the company’s Dream Water brand. The company grew its retail and international channels by 17% in the U.S., and this is driven by the introduction of new innovations such as immunity and gummies and additional distribution points in the airport travel channel, as an example. This takes us to the second KPI, which is maintaining and growing gross profit and targeting a gross profit margin at 50% plus, as an example, despite cost pressures driven by our manufacturing partners and despite unfavorable changes in the channel mix, such as the infused LivRelief channel, including the costing pressures by Amazon, as an example.

The company managed to maintain its margins and, if not improve, in certain channels, such as the e-commerce channel, which delivered double-digit growth in Canada in both LivRelief and Dream Water brands, demonstrating operational discipline and resilience in the face of rising costs. This takes us to the third KPI, which is targeted improvements in adjusted EBITDA. This is the company’s third year in reporting positive EBITDA, and the company is expecting better results in fiscal 2026. This illustrates the strength of its business model and loyal customer or consumer base. The company could have reported more EBITDA in fiscal 2025 or year over year, but it is important to run the business on a long-term basis. Therefore, we need to invest in marketing programs and awareness programs, so on and so forth. The final KPI we mentioned on prior calls is scalability.

The company will continue its efforts in expanding its distribution points and seek opportunities with retailers with strong retail presence. An example of that, the company has been focusing on the travel channel and was able to increase its distribution of its Dream Water across all airports in North America and the Middle East and will apply similar strategies to new channels in North America and internationally as well. In conclusion, management is pleased to be delivering on its commitments and delighted with the strong financial foundation built over the past few years to support future growth. At the same time, we recognize that our journey is far from over. We see significant opportunities ahead across all channels and remain focused on achieving new milestones and driving continued growth for Delivra Health Brands Inc. Thank you very much for listening. With that, we will open the call for questions. Operator.

Conference Operator/Moderator: Thank you. To join the question queue, you may press star, then one on your telephone keypad. You will hear a tone acknowledging your request. If you’re using a speaker phone, please pick up your headset before pressing any keys. To withdraw your question, please press star, then two. We will pause for a moment as callers join the queue. Once again, if you have a question, please press star, then one. Since there are no questions, this concludes the question and answer session. I would like to turn the conference back over to Gord Davey for any closing remarks. Please go ahead.

Gord Davey, President and CEO, Delivra Health Brands Inc.: Thank you. Thank you, everyone, for taking the time to be here with us today. The future is bright for Delivra Health Brands Inc., and we’re ready to explode. Thank you very much, and have a great day.

Conference Operator/Moderator: This brings to a close today’s conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

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